What is the market like for selling your business?
With the holiday season in full swing, and the occasional ray of sunshine, we often find that July and August is a time when business owners take a step back and reflect on their future, both personally and for the business, and consider a business sale.
One of the questions we are frequently asked is: What is the market like for selling businesses? Much of the answer will depend on the business sector which I have addressed below. The economy and the impact of the ongoing Brexit talks seem to have had little impact on buyers’ appetite for acquisitions so far, and most businesses we have spoken to recently seem to be faring well. We also continue to receive a good number of enquiries from international buyers, looking to establish and build their presence in the UK.
Good sustainable businesses with sound prospects for growth will always sell well. Preparing your business for sale, building a management team, growing your client base with repeat custom, and putting effective financial controls and systems in place will all add to the attractiveness and value of your business.
Which sectors are particularly in demand at present?
We always receive a lot of interest in the following sectors:
- IT, hosted services and telecommunications technology
- Precision engineering
- Aerospace engineering
- Facilities management
- Commercial cleaning
We are also seeing increased requests from buyers for a number of other niche sectors:
- Digital marketing
- Building energy management systems
- Healthcare equipment manufacturers and suppliers
- Healthcare outsourced clinical service providers
- Business focused software technology – e.g. Governance, risk and compliance (GRC) software / HR management software / E-learning
Do contact us if you have a business in any of these sectors and are looking at your future plans.
At Hornblower, we like to start dialogue with our clients 2 to 5 years in advance of when you are looking to selling. We are always happy to offer advice on valuation and what performance metrics you need in order to achieve your desired deal value, as well as offer general advice on the various options for exiting your business.